The Finance Committee meeting last Wednesday included a lively exchange about the extent to which the Scottish Government’s budget has changed since 2010/11.
Murdo Fraser argued that the Scottish budget has increased in real terms between 2010/11 and 2017/18. Cabinet Secretary for Finance Derek Mackay replied that there had been a real terms reduction in the Government’s discretionary spending.
Pointing to Annex G of the Draft Budget (which shows an increase from £34.2bn to £37bn), Mr. Fraser then asked whether Mr. Mackay had ‘got his sums wrong’. Mr. Mackay reiterated that there had been a real terms reduction in the government’s spending power of 9.2% over the period.
How can two such contrasting views be arrived at? Here we aim to shed some light on this debate.Continue reading